Auto sales volume rose by almost double digits this month in the United States, with inventories breaching the 3 million unit level for the first time, according to S&P Global Mobility.

In October, 1.3 million units of light vehicles—passenger cars and light trucks—are estimated to have been sold, up by 9.75 percent from the same month last year, the firm said in an Oct. 29 statement.

“As we begin the final quarter of the calendar year, there’s potential that automakers will look to provide some additional support for consumers,” said Chris Hopson, principal analyst at the automotive data company.

“This would be warmly received by new vehicle shoppers who continue to be pressured by high interest rates and slow-to-recede vehicle prices, which are translating to high monthly payments.”

Data from the Federal Reserve Bank of St. Louis show that new vehicle inflation jumped by nearly 11 percent between September 2021 and September 2024.

In June, the average amount financed for new cars was $39,266, up from $33,914 three years back. Meanwhile, rates for 60-month auto loans have risen to 8.4 percent in August 2024 from 4.6 percent in August 2021.

Amid high prices and interest rates, auto inventories are rising.

“This surge aligns with a broader trend we’ve observed over the past two years, where inventory levels consistently rise in the fall,” said Matt Trommer, associate director at S&P Global Mobility.

Although the October numbers show a positive growth in auto sales, several major car manufacturers reported lower sales in the recent quarter. For instance, Stellantis announced a 20 percent year-over-year decline in total units sold in the third quarter.

Matt Thompson, head of U.S. retail sales, said the company introduced an “aggressive incentive program” beginning in the third quarter.

“We continue to take the necessary actions to drive sales and prepare our dealer network and consumers for the arrival of 2025 models,” he said.

General Motors reported that the number of vehicle units sold in the third quarter fell by 2 percent in the United States.

Ford saw a marginal 0.7 percent annual increase in unit sales for the third quarter. In the third quarter of 2023, the company saw unit sales rise by 7.7 percent.

EV Sales Situation

According to the S&P report, battery electric vehicles (BEVs) have made up more than 8 percent of light vehicles sold in the United States every month since June. Two years back, EV share was about 6 percent.

“September BEV share was estimated to reach above 9 percent, and we expect October BEV sales to remain above that level again,” the company stated. “Electric vehicle sales are expected to advance over the remainder of the year.”

A September report from Cox Automotive pointed out that although dealer sentiment regarding EV sales improved in the third quarter following a low point in the previous three months, a majority of dealers continued to report that sales were worse than a year back.

Expectations for future EV sales declined in the third quarter.

“A majority of dealers feel their EV sales will decline in the months ahead, not grow,“ the report reads. ”The future EV sales index scores for both franchised and independent dealers were lower quarter over quarter and year over year in the third quarter.”

Several firms have scaled down their EV projects. In August, Ford, for example, stated that it canceled plans for a fully electric three-row SUV and delayed the production of next-generation pickup trucks, citing pricing challenges from high battery costs. Ford claimed that it would prioritize the development of hybrid electric vehicles.

John Lawler, Ford’s chief financial officer, said the decision was taken to ensure profitability and capital efficiency of its EV business. Ford CEO Jim Farley said the new plan will benefit customers.

“We learned a lot as the number-two U.S. electric vehicle brand about what customers want and value, and what it takes to match the best in the world with cost-efficient design, and we have built a plan that gives our customers maximum choice and plays to our strengths,” he said.

Earlier, GM reduced its 2024 production forecast for electric vehicles by 50,000 units, pointing to weaker demand and a risk of oversupply.